Investors & landlords

I am just trying to understand:

No, it's me paying the parent so that I can work. I am just trying to understand why there is a difference (what does it matter who pays from her perspective). 

1) She is getting paid to watch her grandchild so that I may work - same as in paragraph below 2) She does not have a day care business or look after any other children - same as per the IRS paragraph. 

3) is there a reason she then does not claim payment on line 7a of 1040 as per paragraph below?